Taxation of a limited liability company

GRABMYESSAY.COM OFFERS TO EVALUATE SAMPLES OF VARIOUS TYPES OF PAPERS
Freshman (College 1st year) ・Business ・APA

A limited liability company is a pass-through object, which indicates a situation in which profit passes through to investors or purchasers who then pay taxes. In this regard, the firm itself is not taxed. Instead, the company's income is taxable; the revenue is moved through to all partners or members in accordance with their purchase interest despite whether the partner received a distribution in reality (Moll, 2010). The identical situation can be applied to losses that each of the members can decrease their portion of losses from their tax return. An LLC has to register a tax return notwithstanding of not having a tax burden commonly referred to as a schedule k-1. This allows each member to report his or her share of tax liability when it was earned or incurred by the Limited Liability Company this helps avoid double taxation that happens in other corporations where income is taxed at the corporate level and then taxed again when it is being distributed as dividends to its various members.

The process of taxation begins with the IRS assuming that a Limited Liability Company with more than one member is a partnership for tax purposes (Moll, 2010). At tax time, the limited liability company files form 1065, a partnership return of income which must be attached with a schedule k-1 for each member; that reports each members share of Limited Liability Company income, tax credit items and deductions; which are then included on the members personal tax return.

In conclusion, Limited Liability Company protects its members from double taxation by the flexibility of its nature. The state tax body IRS considers a limited liability company as a no tax burden as it follows a pass through tax system. Hence, taxation is only carried out once at the personal taxes of the members.

Reference

Moll, D. K. (2010). Minority Oppression & the Limited Liability Company: Learning (or Not) from Close Corporation History.

Get a price
Academic level
Urgency
Pages *275 words
Total price

Prices that are easy on your wallet

Our experts are ready to do an excellent job starting at $14.99 per page

What Clients Say About Us
Our Customers Rated UsGreat
4.8
Out of 5 Based on 206 Reviews
I experienced difficult times trying to complete huge number of assignments to my university at the same time and you, guys, literally saved me. Everything was done in time and on the highest level! I really appreciate your help.
Edward,
Essay, History, 12 pages, 7 days, Master's
First time when I placed an order with you, I just lacked time to do all the homework and it was a lot going on in my family. But today I’m doing it sometimes just for fun – I really enjoy communicating with your Customer Support members and just letting myself being a bit lazy
Yuong Lo Mui,
Literature review, IT, 17 pages, 4 days, Master's
My GPA is 4.0 and I’ve always been doing everything myself, but there is a class which I was about to fail thus my GPA would decrease first time in so many years. I ordered few assignments to be completed with GrabMyEssay.com and you did a great job! Thanks to you I still remain one of the best students on campus.
Rosalinda,
Essay, Politics, 8 pages, 5 days, Junior
I am not used to such services and I usually write all the papers by myself. But this time I got in a very difficult situation and had to order my paper on this website. To my surprise it appeared to be quite good. Thank you, it is really nice service. Think I'll get back to you soon!
Jeremy,
Thesis, Management, 34 pages, 14 days, Master's
I am on my maternity leave now, so I spend a lot of time at home taking care of my little son. I’ve decided to get one more higher education degree while I’m spending so much time at home and applied for distance learning in one online college. But caring a baby takes even more time then I excepted so I’m the way too busy to write the complicated masters level research works, but GrabMyEssay.com is so-so-so cool! Thank you for that you exist! I don’t know what I would do without you all!
Karen,
Essay, Education, 15 pages, 8 days, Master's
I am studying and working at the same time and it is difficult to cope with university assignments as I am very tired after the work day. You service is a salvation for me as it helps to do everything on time. I am really happy about it. Wish you everything the best! Especially my lovely writer 109!
Desmond,
Coursework, Religion, 11 pages, 7 days, Master's

Do not know exactly what you need?

We at GrabMyEssay.com

work according to the General Data Protection Regulation (GDPR), which means you have the control over your personal data. All payment transactions go through a secure online payment system, thus your Billing information is not stored, saved or available to the Company in any way. Additionally, we guarantee confidentiality and anonymity all throughout your cooperation with our Company.

Try our service with 15% Discount for your first order!   Try our service with 15% Discount for your first order!   Try our service with 15% Discount for your first order!  

Order Now